oOh!Media Limited has reported a strong boost in earnings in its financial results for the end of 2021.
The company noted significant operating leverage to grow earnings faster than revenue which resulted in a 24% increase in Underlying EBITDA despite lower rent abatements and no Government wage subsidies in 2021.
oOh!Media Limited leveraged the continuing recovery of Out of Home audiences throughout the year to deliver an 18% lift in revenue to $504 million, in contrast to the figures in 2020.
The report also noted that the wide range of assets across Out of Home formats ensured the company delivered the revenue uplift although the lockdowns, Q3 and Q4, and some formats (Fly, Office, Rail) continued to be impacted by the pandemic.
The company reported a net profit, after tax, of $0.8m compared to a loss of $24.3m in the prior year, and loss after tax of $10.3m on contrast to losing of $36.2m in prior year
As a result of oOh!’s strong financial position, the company noted that they will recommence dividends to shareholders for CY21.
Cathy O’Connor, chief executive officer of oOh!Media Limited, said the company successfully leveraged Out of Home audience growth to deliver a much improved financial result.
“The strong result is a testament to our strategy. As the market leader across Australia/New Zealand, we are uniquely positioned to capitalise on the audience recovery in Out of Home,” she said.
“Our scale and diversity across a number of formats means we are also able to deliver this growth despite some formats such as Fly, Office and Rail continuing to be impacted by the pandemic.
“Meanwhile, our strong operating leverage means we continue to grow earnings faster than revenue which has enabled the Company to return to profitability this year on a pre AASB16 basis and recommence dividends to shareholders.
“We are also generating further momentum into FY22 with a solid start to the year. First quarter revenue is pacing 15% ahead of the prior corresponding quarter and at 93% of the first quarter 2019.
“For the medium term, the fundamentals for Out of Home as a growth advertising medium remain compelling. This will only be enhanced by further significant digital investment opportunities across key formats.
O’Connor noted: “Our strategy is focused on oOh! being a more digital and digitised Out Of Home business generating enhanced leverage from our portfolio of existing assets and disciplined investments in building our assets and capability to deliver further growth.
“During CY21, we added over 30 digital locations to our metropolitan and regional roadside billboard portfolio which means we now have over 200 large format digital signs across Australia.
“In support of our Digital Out of Home strategy we have continued the digital transformation of our planning and buying systems. As part of this program, we are implementing initiatives to simplify the planning and buying process. We are also participating in the emerging programmatic digital Out of Home marketplace and further developing systems for improved yield management.
“As a medium, Out of Home stands to benefit from the adoption of the MOVE (measurement of outdoor visibility and exposure) 1.5 industry standard from the first quarter of 2022.
“The Industry is now united on Share of Time as the common currency which will make it easier for advertisers to plan, buy and measure Out of Home campaigns via an enhanced, more accurate and standardised approach,” she added.
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Top image: Cathy O’Connor